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Tatra banka

10.12.2016 17:36

Documentary collection

Documentary collection is a type of documentary payment mostly
used with foreign countries, where documents are released to
the buyer only upon the fulfilment of the collection conditions.

  • minimising risks from a business relationship
  • ideal tool for goods transported by sea
  • simple and fast handling
Advantages

Advantages

  • documentary collection is suitable especially when the goods are dispatched by sea and all originals of bill of lading are sent through the bank
  • the buyer shall have access to the documents only upon the fulfilment of collection instruction (the payment or acceptance of a bill)
  • simple and fast handling
  • lower charges compared to Letter of Credit
  • documentary collection can be opened even without security
  • unified international legislation - documentary collection are governed by the Uniform Rules for Collection published by the International Chamber of Commerce in Paris
Details

Details

Documentary collection is a type of payment mostly with foreign countries, where documents are released to the buyer only upon the fulfilment of one of the following collection conditions:

  • release of documents against payment
  • release of documents against acceptance of a bill of exchange due in the future

We provide the following types of documentary/clean collection:

1. import documentary and clean collection
Tatra banka´s client is in the position of a buyer/drawee

2. export documentary and clean collection
Tatra banka's client is in the position of a seller/drawer

By documentary collection the bank does not guarantee the client's obligation.

Conditions

Conditions

  1. duly completed application signed by the client's authorised representatives submitted together with documents the presentation of which had been previously agreed between the business partners
  2. sufficient funds on the client's account for the payment of bank charges
Collection process

Collection process

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Documentary collection process

Click on the first item to start. Business partners sign a contract with payment term - documentary collection. After shipment of the goods the seller prepares all the necessary documents and presents them along with the request for collections to the remitting bank. The remitting bank sends out the documents to the collecting / presenting bank along with instructions concerning release of the documents. The collecting / presenting bank advises to the buyer receipt of the documentary collection and collection instructions which can be - documents against payment (D/P) or documents against acceptance (D/A). If the instruction is D/A - the presenting bank will present to the buyer the Bill of Exchange (B/E) for acceptance,
if the instruction is D/P - the presenting bank will ask the buyer to present a payment order.
D/A - the bank will release the documents, provided the buyer accepts the B/E,
D/P - the bank will release the documents, provided the buyer presents to the bank a payment order.
D/A - at maturity the buyer pays value of the B/E and the bank remits proceeds to the seller through the remitting bank
D/P - after receipt of the payment order, the bank remits proceeds to the seller through the remitting bank